LESSON 4: OWNERSHIP RIGHTS & LIMITATIONS Flashcards
What is meant by “Interests in Real Estate”?
“Interests in real estate” refers to ownership, tenancy, and other rights in property. These interests can be possessory (right to occupy) or non-possessory (such as liens, easements).
What is a Possessory Interest in Real Estate?
A possessory interest grants the right to occupy or control land. The three main types are: Fee Simple Absolute, Life Estate, and Leasehold.
What is a Non-Possessory Interest?
A non-possessory interest refers to a right someone has in another person’s land without owning the title. This can include liens, encroachments, restrictive covenants, and easements.
What is the Difference Between a General Warranty Deed and a Title Policy?
A general warranty deed guarantees that the property is free of undisclosed issues. A title policy ensures the buyer is defended if someone challenges the title.
What is a “Conveyance” in Real Estate?
A conveyance is the transfer of ownership or an interest in real estate, often through a sale or deed.
What is Fee Simple Interest?
Fee simple interest is the highest and most complete ownership in real property, giving the owner full control and the ability to transfer the property.
What is a Joint Estate in Real Estate?
Joint estates allow two or more parties to own property together. There are different types, such as joint tenancy, where owners share equal rights and interests with survivorship rights.
What is Required for a Joint Tenancy?
To establish joint tenancy, four unities are required: Time, Title, Interest, and Possession. These ensure equal ownership and survivorship rights.
What is Tenancy in Common?
In a tenancy in common, multiple individuals can own property together without a limit on the number of owners. Each can pass their share to heirs, and they may hold unequal shares.
What is a Future Interest in Real Estate?
A future interest is a right to property that will take effect in the future, such as a right of reversion or an option to purchase.
What are the Types of Leasehold Estates?
The types of leasehold estates are: tenancy for years, periodic tenancy, tenancy at will, and tenancy at sufferance.
What is the Meaning of Community Property?
In community property states, property acquired during a marriage is owned equally by both spouses unless proven to be separate property (e.g., property owned before marriage or received as a gift/inheritance).
What is Community Property in Texas?
In Texas, community property includes property acquired during the marriage, while separate property includes assets owned prior to marriage, inherited, or received as gifts.
What is the Right of Survivorship in Community Property?
In community property with right of survivorship, property passes automatically to the surviving spouse upon the death of the other, similar to joint tenancy.
What is a Security Interest in Real Estate?
A security interest is a right that a lender holds in property, typically through a deed of trust, to ensure repayment of a loan. The lender only gains ownership if the borrower defaults.
What is the Role of a Life Estate in Real Estate?
A life estate grants ownership of property for the duration of someone’s life. Upon their death, the property passes to another person, often as defined in the deed.
What is a Reversionary Interest?
A reversionary interest occurs when the original owner of a property retains the right to reclaim the property after a certain condition or period ends.
What is eminent domain?
Eminent domain is the power of certain governmental entities (such as states and municipalities) to take private property for “public” use. The definition of public use has expanded to include transferring property from private owners to private developers for public benefit.
What are public controls in land use?
Public controls are local, state, and federal regulations that ensure the long-term welfare and needs of communities. These controls govern planning, zoning, taxation, and environmental impact, among others.
What is a master plan in community planning?
A master plan is a long-term plan developed by a community to guide future development and redevelopment. It helps manage growth, protect property values, and address future public needs.
What is an Environmental Impact Report (EIR)?
An EIR is a report required for new developments to evaluate the potential environmental impact of the project, including its effects on air, water, wildlife, and the community.
What is zoning?
Zoning is the process by which local governments determine the allowed use of private land. It includes designating areas for residential, commercial, industrial, or agricultural uses.
What is spot zoning?
Spot zoning occurs when a small parcel of land is designated for a unique use that is not permitted by the underlying zoning.
What is nonconforming use?
Nonconforming use refers to a property that retains its previous use after a zoning change. If the property changes use, it must comply with new zoning requirements.
What is a variance in zoning?
A variance is an exception granted to a property owner that allows them to deviate from specific zoning requirements, such as building setbacks or property size.
What are building codes?
Building codes are regulations that set minimum standards for construction, ensuring the safety and habitability of buildings.
What is a Certificate of Occupancy (CO)?
A CO is a certificate issued by the local government to verify that a building meets all building codes and is safe for occupancy.
What is upzoning?
Upzoning refers to a change in zoning that allows for more intensive use of a property, such as converting a residential area into a commercial zone.
What is inclusionary zoning?
Inclusionary zoning requires a certain percentage of housing in a development to be set aside for low- or moderate-income families.
What is escheat?
Escheat is the process by which property is transferred to the state when an individual dies without a will, heirs, or other arrangements for the transfer of ownership.
What is the general process for subdivision approval?
The process includes surveying the land, planning the community layout, submitting the plan to the city for approval, finalizing the plan, and then beginning construction after obtaining necessary permits and approvals.
What is a plat in subdivision development?
A plat is a detailed map created by the developer that shows property lines, roads, utilities, and other features in a subdivision.
What are zoning ordinances?
Zoning ordinances are local laws that regulate land use, ensuring that development complies with the designated purpose of the land (e.g., residential, commercial).
What is a non-conforming use structure?
A non-conforming use structure is a building that legally existed under previous zoning laws but no longer complies with current zoning regulations.
What are roll-back taxes?
Roll-back taxes are taxes assessed when the use of a property changes, typically from agricultural to commercial, and reflect the difference in tax rates for the previous and current uses.
How does the process of subdivision development start?
The development process begins with the developer surveying the land, creating a plat, and submitting the plan to the city for approval before construction begins.
What is the difference between gridiron and curvilinear plat patterns?
The gridiron pattern features large lots and wide streets, while the curvilinear pattern integrates smaller streets and cul-de-sacs, providing more open space and quieter neighborhoods.
What are the requirements for building a new structure?
To build a new structure, developers must obtain a building permit, comply with local zoning laws, follow building codes, and pass inspections during construction.
What is the most common way land use is regulated through private control?
Deed restrictions are the most common way land use is regulated through private control.
What are deed restrictions?
Deed restrictions are limitations that control the land’s use, typically set by developers to align with a master plan and disclosed to buyers in the sales contract.
What must deed restrictions be?
- Not discriminatory 2. Promote the general welfare 3. Be consistent 4. Be exercised reasonably 5. Be clear and specific.
Who enforces deed restrictions?
Civil authorities and courts, depending on the type of restriction and the governmental structure of the city or state.
What happens if a deed restriction conflicts with a zoning ordinance?
The deed restriction supersedes the zoning ordinance.
How do deed restrictions relate to municipal codes?
Deed restrictions are separate from municipal codes and ordinances, so both must be complied with when making changes to private property.
Can a deed restriction override a building permit?
Yes, a valid building permit does not invalidate a deed restriction.
How can property owners request exceptions to deed restrictions?
By petitioning the affected community, mortgage lenders, and the original developer, or through judicial action by suing to strike down the restriction.
What happens if a deed restriction is violated?
The lot owner can apply for an injunction, and if the court upholds the injunction, the violator must cease the violation or remove it.
What is the doctrine of laches?
It bars a claim if there has been unreasonable delay in asserting rights, and a court may overturn a deed restriction if property owners don’t enforce it in time.
Do deed restrictions expire?
Yes, some deed restrictions may expire after a set number of years (e.g., 25 years), and property owners can vote to extend them.
What are special assessments?
Special assessments are taxes imposed to fund specific municipal improvements like sidewalks, curbs, gutters, or neighborhood parks.
Who is liable for special assessments?
The property owners in the benefiting district are liable for special assessments.
What is Fee Simple Absolute?
It is the most comprehensive ownership, including the rights of possession, exclusion, enjoyment, control, and disposal.
What is a Defeasible Fee?
A defeasible fee is an estate with a qualification, meaning ownership can be defeated if a specific event occurs or does not occur.
What is a Special Limitation (Fee Simple Determinable)?
Ownership automatically terminates upon the happening of a specified event.
What is Fee Tail?
An estate that lasts as long as the owner has descendants, but it is not used in all states.
What is a Life Estate?
It gives exclusive possession and use until death, after which the property returns to the grantor or a third party.
What is a Reversionary Estate?
When a life estate ends, the property reverts to the grantor or their heirs.
What is a Remainder Estate?
Upon death of the life tenant, the property goes to the remainder man named in the deed with the remainder interest.
What is Dower?
A wife’s partial ownership rights (usually 1/2) in her husband’s real property after his death.
What is Curtesy?
A husband’s ownership rights in his wife’s real property after her death.
What is Community Property?
Property acquired during marriage is community property, and each spouse gets half interest. Property acquired before marriage or by gift/inheritance is separate property.
What is an Estate for Years?
A right to occupy property for a fixed, specific period of time.
What is an Estate from Period-to-Period?
A lease that continues from period to period (e.g., month to month or year to year).
What is an Estate at Will?
A lease with no specified end date, and either party can cancel at any time with notice.
What is an Estate at Sufferance?
A tenancy where a person stays on the property after the lease ends or without permission (e.g., a trespasser).
What is an encumbrance?
An encumbrance is a claim, limitation, or liability against real estate, which can affect the owner’s ability to transfer title or lessen its value.
What are examples of encumbrances?
Liens, deed restrictions, easements, covenants, encroachments, licenses, and deeds of trust/mortgages.
What is a Deed of Trust?
A deed that conveys title to a trustee as security for a debt. It involves three parties: trustor (borrower), beneficiary (lender), and trustee (usually an attorney).
What is a Mortgage?
A document placing a lien on property to secure debt, used in title theory states where the lender holds the title.
What are Mechanics’ and Materialmen’s Liens?
Liens placed on a property by labor/material providers in construction, allowing foreclosure to receive payment.
What are Deed Restrictions?
Clauses in a deed that limit future property use, like restrictions on building density, structure types, or purpose of use.
What is an Easement?
A right to use a property for a specific purpose, often for ingress/egress, and can be permanent or temporary.
What is an Encroachment?
An illegal improvement on another’s property, such as a fence or driveway, reducing the invaded property’s size or value.
What is a License in property law?
A revocable, temporary permission for land use, such as permission for a garage sale, which can be terminated at any time by the owner.
What is a Lis Pendens?
A written notice that a property is involved in a legal dispute, recorded in public records, and can affect the title.
What does the Riparian System state about land ownership along rivers or streams?
The Riparian System states that if you own land bordering a river or stream, you also own the right to use the water in common with other landowners. This right is to reasonable use of water from the water course.
Where is the Riparian System prevalent in the U.S.?
The Riparian System is prevalent in the eastern U.S. where water is plentiful.
What is the doctrine of Prior Appropriation, and where is it used?
The Prior Appropriation doctrine says the state owns all water and holds it in trust for citizens. It requires users to appropriate (take) water and put it to beneficial use. It is mainly used in the western U.S. where water scarcity is a concern.
What does the Prior Appropriation doctrine say about water rights?
Water rights in the Prior Appropriation doctrine are based on who first appropriated the water. The first person to use the water has the first claim, and so on.
What is the difference between Riparian and Littoral water rights?
Riparian rights apply to flowing water (rivers/streams), while Littoral rights apply to non-flowing water, such as lakes and oceans.
How does the rule of “first in time, first in right” apply in Prior Appropriation?
The rule states that the first person to appropriate water has the first claim to it, provided they use it for beneficial purposes.
What is groundwater, and how is it treated in Texas?
Groundwater lies below the surface and is owned by the property owner in Texas. It is governed by the “rule of capture,” allowing unlimited pumping, even if it harms neighbors’ supplies.
What is the significance of the rule of capture in groundwater law?
The rule of capture allows property owners to pump unlimited groundwater, but local groundwater districts can regulate wells.
What happens when a person abandons their water rights in Texas under Prior Appropriation?
If a person abandons their water rights for three years, their right to the water expires, and someone else can appropriate it.
What is groundwater contamination, and how does it occur?
Groundwater contamination occurs when pollutants enter the groundwater, often due to leaking systems or natural contaminants like arsenic.
What are underground storage tanks (USTs), and what regulations apply to them?
USTs are tanks and pipes storing petroleum or hazardous substances underground. They are regulated by federal UST regulations, especially for tanks containing petroleum.
How do leaking USTs pose a hazard to the environment?
Leaking USTs can contaminate soil and groundwater, potentially harming drinking water and causing environmental risks like fire and explosion.
What should buyers do when concerned about water contamination or leaking USTs?
Buyers should get an environmental inspection to check for water contamination or leaking USTs before purchasing the property.
What are mineral rights, and how are they defined in Texas?
Mineral rights refer to the entitlement to natural resources beneath the land, but clay, sand, gravel, and water are not considered mineral rights in Texas.
What is the dominant estate and servient estate concept?
In property law, the dominant estate benefits from an easement, while the servient estate is the property over which the easement runs.
What is the dominant estate in oil, gas, and mineral (OGM) rights?
In OGM rights, the mineral estate is the dominant estate, and the surface land is the servient estate.
What is the accommodation doctrine in mineral rights?
The accommodation doctrine ensures that both surface and mineral rights are respected, balancing the needs of surface owners and mineral owners.
What is the role of the mineral lessee?
The mineral lessee has the right to use the surface of the land as necessary to extract minerals but must follow legal and environmental requirements.
How do lease terms affect the rights of surface and mineral owners?
Lease terms can protect the surface owner from damage by requiring the lessee to minimize harm during mineral extraction.
What is the distinction between a “mineral lease” and a typical lease?
A mineral lease is not a typical real estate lease but a conveyance of a fee simple determinable estate, where the lessee has temporary rights to extract minerals.
What is the significance of severing mineral rights?
Severing mineral rights allows for the sale or lease of the minerals beneath the land while the surface rights remain with the landowner.
What is a mineral estate, and what rights does it include?
A mineral estate includes the right to extract minerals, use surface land, lease rights, receive royalties, and enforce remediation after extraction.
What is fracking?
Fracking is a process where a liquid mixture is forced into cracks in stone formations below ground to release more oil and gas.
When did fracking first become used?
Fracking was first used in 1949 in the Hugoton oil field in Kansas.
What are the environmental concerns about fracking?
Fracking is criticized for potentially damaging the environment, contaminating groundwater, and using large amounts of water, especially in arid regions.
What are landmen in real estate?
Landmen are professionals who research property records to determine the ownership of minerals beneath a property.
What environmental hazards might affect real property?
Mold, asbestos, lead-based paint, radon, formaldehyde, carbon monoxide, PCBs, CFCs, underground storage tanks, and groundwater contamination.
What is radon?
Radon is a colorless, odorless, radioactive gas that can cause lung cancer. It’s produced by the decay of uranium and radium in the soil.
What is the danger of lead-based paint?
Lead-based paint, used before 1978, can cause damage to the nervous system, red blood cells, brain, and kidneys.
What is the danger of asbestos?
Asbestos fibers can cause respiratory diseases if inhaled. It was used for insulation before 1978.
What is carbon monoxide and its dangers?
Carbon monoxide is an odorless gas from incomplete combustion. It can cause dizziness, nausea, and death if inhaled in high concentrations.
What are some key issues with groundwater contamination?
Sources of contamination include underground storage tanks, pesticides, herbicides, and waste disposal runoff.
What is a homestead exemption in Texas?
The homestead exemption protects a property owner’s homestead from creditors and offers a property tax deduction of 20%.
How does a homestead exemption protect property?
It protects property from creditors, provides a life estate for surviving spouses, and prevents the sale or encumbrance of property without both spouses’ consent.
What are exceptions to homestead protection in Texas?
Exceptions include taxes, purchase money liens, property taxes, and certain liens for materialmen’s and mechanic’s liens.
What is a home equity loan in Texas?
A home equity loan allows homeowners to borrow against their homestead equity, subject to restrictions, including a cap on total encumbrances.
What is the maximum homestead exemption for rural properties in Texas?
In rural areas, a married couple can claim up to 200 acres as a homestead, and a single person can claim up to 100 acres.
How is homestead protection terminated?
Homestead protection can be terminated by death, alienation (sale), or abandonment of the property.
